Global Defense Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

In this report, the Defense Market has been segmented by Equipment Type, Type, Platform, Operation, and Geography.

Defense Market, Segmentation by Equipment Type

The Defense Market has been segmented by Equipment Type into Personnel Training and Protection, Communication, Armament and Transport.

Personnel Training and Protection

The personnel training and protection segment holds approximately 25% of the global defense market. This segment includes advanced training simulators, virtual reality (VR) systems, combat training solutions, and a wide range of personal protective equipment (PPE) such as body armor, helmets, and ballistic shields. Growing focus on enhancing soldier survivability and improving combat readiness through realistic training is driving strong demand in this segment worldwide.

Communication

The communication segment contributes about 20% to the global defense market. Modern military communication systems include secure radios, satellite communication (SATCOM), network-centric systems, and cyber-secure communication networks. The increasing need for real-time data exchange, interoperability across joint forces, and robust cyber defense capabilities is fueling demand for advanced defense communication solutions.

Armament

The armament segment dominates the global defense market, accounting for approximately 35% of total market share. This segment encompasses a wide range of offensive and defensive weapon systems such as small arms, artillery systems, missiles, precision-guided munitions, and unmanned weapon platforms. Growing investments in next-generation weapon systems and rising global demand for advanced strike capabilities and network-enabled weapon platforms are driving robust growth in this segment.

Transport

The transport segment holds about 20% of the global defense market. This segment includes military ground vehicles, aircraft, naval vessels, and logistics support equipment. The demand for multi-role transport platforms with enhanced mobility, survivability, and modular capabilities is growing rapidly. Increasing emphasis on rapid deployment capabilities and improved logistics support for joint force operations is fueling market growth in the transport segment.

Defense Market, Segmentation by Type

The Defense Market has been segmented by Type into Air-Based Defense Equipment, Sea-Based Defense Equipment, Land-Based Defense Equipment, Defense Equipment Maintenance, and Others.

Air-Based Defense Equipment

The air-based defense equipment segment holds approximately 35% of the global defense market. This segment includes a wide range of military aircraft such as fighter jets, attack helicopters, transport aircraft, and unmanned aerial vehicles (UAVs). Growing demand for next-generation air combat platforms, airborne surveillance systems, and precision strike capabilities is driving strong growth. Increased investments in stealth technologies and integrated avionics systems further fuel market expansion in this segment.

Sea-Based Defense Equipment

The sea-based defense equipment segment contributes about 20% to the global defense market. This segment includes naval vessels such as frigates, destroyers, submarines, and aircraft carriers, along with naval weapon systems and advanced communication networks. Rising investments in blue-water naval capabilities and the growing demand for multirole combat vessels and undersea warfare platforms are driving market growth across this segment.

Land-Based Defense Equipment

The land-based defense equipment segment dominates the global defense market, accounting for approximately 40% of total market share. This segment encompasses armored vehicles, main battle tanks (MBTs), artillery systems, infantry weapons, and ground-based air defense systems. Increasing demand for network-centric warfare capabilities, enhanced soldier mobility, and advanced land combat systems is driving robust growth in this segment worldwide.

Defense Equipment Maintenance

The defense equipment maintenance segment holds about 3% of the global defense market. This segment includes maintenance, repair, overhaul (MRO) services, and lifecycle support for a broad range of defense platforms. Growing emphasis on fleet readiness, operational availability, and cost-effective sustainment is fueling demand for advanced predictive maintenance solutions and integrated MRO services.

Others

The others segment contributes approximately 2% to the global defense market. This category includes space-based defense systems, cyber defense solutions, electronic warfare (EW) systems, and directed energy weapons. Growing focus on developing multi-domain operational capabilities and addressing emerging asymmetric threats is driving increased investments in these advanced and emerging areas of the defense market.

Defense Market, Segmentation by Platform

The Defense Market has been segmented by Platform into Terrestrial, Aerial and Naval.

Terrestrial

The terrestrial segment dominates the global defense market, accounting for approximately 45% of total market share. This segment encompasses a wide range of land-based platforms including main battle tanks (MBTs), infantry fighting vehicles (IFVs), armored personnel carriers (APCs), artillery systems, and ground-based air defense systems. Growing investments in next-generation armored vehicles, enhanced soldier mobility, and network-enabled ground warfare capabilities are driving robust demand for terrestrial defense platforms.

Aerial

The aerial segment contributes about 35% to the global defense market. This segment includes combat aircraft such as fighter jets, attack helicopters, unmanned aerial vehicles (UAVs), and military transport aircraft. The rising focus on air superiority, strategic strike capabilities, and airborne intelligence, surveillance, and reconnaissance (ISR) is driving significant investments in advanced aerial platforms and stealth technologies.

Naval

The naval segment holds about 20% of the global defense market. This segment covers a wide range of naval platforms including aircraft carriers, destroyers, frigates, corvettes, submarines, and unmanned surface and underwater vehicles (USVs/UUVs). Growing emphasis on blue-water naval capabilities, undersea warfare, and littoral combat operations is driving strong demand for modern multi-mission naval vessels and advanced naval weapon systems.

Defense Market, Segmentation by Operation

The Defense Market has been segmented by Operation into Autonomous Defense Equipment and Manual.

Autonomous Defense Equipment

The autonomous defense equipment segment holds approximately 30% of the global defense market and is experiencing rapid growth. This segment includes unmanned aerial vehicles (UAVs), unmanned ground vehicles (UGVs), unmanned surface vehicles (USVs), autonomous underwater vehicles (AUVs), and AI-enabled weapon systems. Increasing focus on force multiplication, risk reduction, and intelligence-driven warfare is driving strong demand for autonomous platforms. Governments and defense organizations are investing heavily in next-generation autonomous systems to enhance operational flexibility and maintain tactical superiority.

Manual

The manual segment dominates the global defense market, accounting for approximately 70% of total market share. This segment includes manned combat systems such as main battle tanks, fighter aircraft, naval ships, artillery, and infantry weapon systems operated directly by human forces. Despite growing interest in autonomous technologies, manned platforms remain critical for strategic deterrence, high-intensity combat operations, and missions requiring human decision-making and situational adaptability. Ongoing investments in platform modernization and man-machine teaming further strengthen demand in this segment.

Defense Market, Segmentation by Geography

In this report, the Defense Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Defense Market Share (%), by Geographical Region

North America

North America leads the global defense market, contributing approximately 40% of total market share. The region’s leadership is driven by significant investments in advanced defense technologies, including next-generation combat platforms, autonomous systems, and space-based defense solutions. The United States accounts for the majority of regional spending, with a strong focus on force modernization, multi-domain operations, and strategic deterrence. The growing demand for network-centric warfare capabilities and cutting-edge weapon systems continues to fuel robust market growth.

Europe

Europe holds around 20% share of the global defense market. European nations are actively pursuing multi-national defense programs and enhancing regional security in response to evolving geopolitical threats. Investments in next-generation air defense systems, land-based combat platforms, and modern naval vessels are driving market growth. The growing emphasis on joint defense capabilities and interoperability across NATO member states is further strengthening demand for advanced defense equipment.

Asia Pacific

Asia Pacific accounts for approximately 25% of the global defense market and is witnessing rapid expansion. Regional powers such as China, India, Japan, and South Korea are increasing investments in air superiority platforms, naval capabilities, and land-based defense systems. The growing focus on indigenous defense manufacturing and military modernization programs is driving robust demand for advanced defense technologies and platforms across the region.

Middle East and Africa

The Middle East and Africa region contributes about 10% to the global defense market. Middle Eastern countries are investing heavily in airborne strike capabilities, integrated air defense systems, and naval modernization to enhance regional security. In Africa, emerging investments in counter-terrorism operations, border security, and peacekeeping forces are gradually expanding demand for cost-effective defense equipment and modernization programs.

Latin America

Latin America holds about 5% share of the global defense market. While regional defense spending remains moderate, countries such as Brazil, Mexico, and Argentina are investing in airborne surveillance systems, coastal defense capabilities, and homeland security solutions. The rising need to strengthen border security, enhance counter-narcotics operations, and support peacekeeping missions is driving incremental growth opportunities in the region’s defense market.

This report provides an in depth analysis of various factors that impact the dynamics of Global Defense Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers

• Geopolitical tensions
• Emerging threats
• Military modernization

• Dual-use technologies : Dual-use technologies serve as a powerful driver of innovation and growth within the Global Defense Market, offering versatility and efficiency across both military and civilian applications. These technologies encompass a wide range of products and systems, from advanced materials and electronics to software and manufacturing processes, which can be adapted for military use while also finding applications in industries such as aerospace, telecommunications, and healthcare. The dual-use nature of these technologies not only facilitates cost savings and resource optimization for defense organizations but also promotes collaboration and knowledge sharing between the defense sector and other industries, fostering cross-pollination of ideas and expertise.

  The integration of dual-use technologies enhances the military's capabilities in areas such as intelligence gathering, surveillance, and precision strike, while also driving advancements in civilian sectors such as transportation, energy, and medical diagnostics. For example, innovations in satellite imaging and GPS technology originally developed for military purposes have revolutionized civilian applications such as navigation systems, weather forecasting, and disaster management. Similarly, advancements in cybersecurity, encryption algorithms, and data analytics designed to safeguard military networks have widespread implications for protecting critical infrastructure, financial systems, and personal privacy in the civilian sphere. As dual-use technologies continue to evolve and proliferate, they will remain a key enabler of innovation and competitiveness within the Global Defense Market, shaping the future of defense capabilities and industrial collaboration on a global scale.

Restraints

• Budget Constraints
• Political Uncertainty
• Political Uncertainty

• Technology Transfer Restrictions: Technology transfer restrictions serve as a formidable constraint within the Global Defense Market, stemming from a complex interplay of national security concerns, regulatory frameworks, and geopolitical tensions. These restrictions often arise from stringent export control policies enacted by governments to safeguard sensitive defense technologies from falling into the hands of adversaries or unauthorized entities. As a result, defense contractors face formidable hurdles when seeking to transfer advanced military technologies across borders, navigating intricate regulatory landscapes and bureaucratic processes that can significantly delay or even derail collaborative ventures and international sales agreements.

  Technology transfer restrictions impede the free flow of knowledge and innovation within the defense industry, stifling opportunities for cross-border collaboration and hindering the development of cutting-edge defense capabilities. By limiting the exchange of expertise, research, and technological advancements, these constraints inhibit the ability of defense stakeholders to leverage global expertise and resources effectively. Consequently, countries and companies may find themselves operating in silos, unable to access critical technologies or fully capitalize on collaborative opportunities that could enhance their defense capabilities. This fragmentation not only impedes technological progress but also hampers efforts to address shared security challenges through cooperative means, thereby exacerbating global security inequalities and impeding collective efforts towards international stability.

Opportunities

• Humanitarian Missions
• Cybersecurity Solutions
• Counterterrorism Measures

• Space Exploration and Defense: Space exploration and defense represent a frontier of opportunity within the Global Defense Market, offering vast potential for innovation, collaboration, and strategic advantage. As nations increasingly recognize the importance of space in maintaining security, communication, and surveillance capabilities, investments in space exploration and defense have surged. Defense contractors and space agencies alike are developing advanced satellite systems, space-based sensors, and space situational awareness technologies to enhance military reconnaissance, early warning, and navigation capabilities. Moreover, the militarization of space has spurred investments in anti-satellite weapons, space debris mitigation technologies, and defensive measures to protect vital space assets from potential adversaries.

  Beyond traditional defense applications, space exploration and defense present opportunities for economic growth, technological advancement, and international cooperation. The burgeoning space sector has sparked innovation in areas such as commercial space travel, satellite-based internet services, and asteroid mining, opening up new markets and revenue streams for defense contractors and private space companies. Furthermore, collaborative ventures such as international space missions, joint research initiatives, and public-private partnerships foster cross-border cooperation and knowledge exchange, driving advancements in space exploration and technology. By leveraging the opportunities presented by space exploration and defense, the Global Defense Market can not only enhance its military capabilities but also contribute to broader scientific discovery, economic development, and global security.

Key players in Global Defense Market include:

• Lockheed Martin Corporation
• The Boeing Company
• BAE Systems plc
• Northrop Grumman Corporation
• Raytheon Technologies Corporation
• Airbus SE
• General Dynamics Corporation
• Leonardo S.p.A.
• Thales Group
• Saab AB

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis